PANYU CABLE SELECTS SALIRA TO DELIVER BROADBAND SERVICES IN THE DISTRICT OF PANYU

Multi-Year Partnership Created to Enhance Cable Operator’s Communications Networks

SHANGHAI – SEPTEMBER 24, 2003 – Salira Optical Network Systems, a leading provider of optical access systems, today announced that GuangZhou Pantong Information Broadband Network, Ltd. (“Panyu Cable”) has partnered with Salira Shanghai, Ltd. to cooperate in the development of the cable operator’s advanced telecommunications networks. Panyu Cable has agreed to deploy the Salira 2000 Platform in the Panyu district of GuangZhou to deliver broadband services to business, residential and governmental subscribers.

“The partnership with Salira to enhance Panyu Cable’s communications networks is vital to our strategy of providing voice and data services in addition to our core video offering,” said Ms. Xianhua Cheng, Panyu Cable’s General Manager. “Salira’s products combine the operational simplicity of Ethernet with the high bandwidth capacity of optical transmission to deliver the advanced broadband services our customers are demanding.”

Panyu Cable will use the Salira 2000 Platform to deliver a wide array of services including IP-based voice, video and data applications. In addition to this “triple play” of broadband services, Panyu Cable will use Salira’s products to deliver cost-effective IP-based broadcast television and advanced services like video-on-demand to its existing base of cable subscribers. Salira’s products enables cable operators to offer a compelling alternative to traditional telephony-based carriers in the large market for advanced telecommunications services.

“We are looking forward to working with Panyu Cable to deliver packet-based broadband services in Panyu,” commented Wei Gao, President of Salira Shanghai Ltd. “Panyu Cable recognizes that Ethernet is an increasingly important access technology that greatly simplifies network management, and enables the delivery of value-added applications like video-on-demand.”

The Salira 2000 Platform is an Ethernet Passive Optical Network (EPON) consisting of the Salira 2500, a high-density optical line terminal, and the Salira 2300, the industry’s first multi-customer optical network unit. The Salira 2300 can be configured to support varying combinations of TDM (E1/T1) and Fast Ethernet ports depending on customer demand for different services. The Salira Access Management (SAM) system combines service creation, subscriber management and EMS functionality into one integrated software suite that greatly simplifies service provisioning and maintenance.

About GuangZhou Pantong Information Broadband Network, Ltd.
GuangZhou Pantong Information Broadband Network, Ltd. is a leading service provider that delivers Cable TV and associated telecommunications services to customers in the city of Panyu. The company provides Internet service to more than 260,000 customers in several dozen advanced residence zones and the Guangdong University City.

About Salira Optical Network Systems, Inc.
Headquartered in Santa Clara, California, Salira builds broadband systems that are used to deliver advanced voice, video and data services to business and residential customers. Salira’s systems give carriers the ability to offer traditional TDM services and advanced IP-based broadband services in one integrated, cost-effective system. Salira Shanghai, Ltd., a subsidiary of Salira, performs manufacturing, R&D and customer support functions, and has responsibility for marketing and sales in the Asia Pacific region.